Analyzing First Financial Bankshares (FFIN) & Hudson City Bancorp (HCBK)

First Financial Bankshares (NASDAQ: FFIN) and Hudson City Bancorp (NASDAQ:HCBK) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares First Financial Bankshares and Hudson City Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Financial Bankshares $308.20 million 9.55 $106.38 million $1.62 27.65
Hudson City Bancorp N/A N/A N/A N/A N/A

First Financial Bankshares has higher revenue and earnings than Hudson City Bancorp.

Dividends

First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. Hudson City Bancorp does not pay a dividend. First Financial Bankshares pays out 46.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

50.1% of First Financial Bankshares shares are held by institutional investors. 5.0% of First Financial Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Financial Bankshares and Hudson City Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Bankshares 33.03% 12.41% 1.57%
Hudson City Bancorp 28.49% 2.98% 0.40%

Analyst Ratings

This is a breakdown of recent recommendations for First Financial Bankshares and Hudson City Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Bankshares 0 4 0 0 2.00
Hudson City Bancorp 0 0 0 0 N/A

First Financial Bankshares currently has a consensus target price of $40.50, suggesting a potential downside of 9.60%. Given First Financial Bankshares’ higher possible upside, equities analysts plainly believe First Financial Bankshares is more favorable than Hudson City Bancorp.

Summary

First Financial Bankshares beats Hudson City Bancorp on 8 of the 9 factors compared between the two stocks.

First Financial Bankshares Company Profile

First Financial Bankshares, Inc. is a financial holding company. The Company, through its subsidiaries, conducts commercial banking business. As of December 31, 2016, the Company’s subsidiaries included First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc., Abilene, Texas; First Financial Trust & Asset Management Company, National Association, Abilene, Texas; First Financial Investments, Inc., Abilene, Texas, and First Financial Insurance Agency, Inc., Abilene, Texas. Its banking centers are located in Central, North Central, Southeast and West Texas. Its loan portfolio consists of loans made to businesses, professionals, individuals, and farm and ranch operations located in the primary trade areas served by its subsidiary bank. Its securities available-for-sale include the United States Treasury securities, Obligations of the United States Government sponsored enterprises and agencies and Obligations of states and political subdivisions.

Hudson City Bancorp Company Profile

Hudson City Bancorp, Inc. serves as the holding company of its subsidiary, Hudson City Savings Bank (the Bank). The Bank is a federal stock savings bank. The Company is a community and consumer-oriented retail savings bank offering traditional deposit products, residential real estate mortgage loans and consumer loans. In addition, it purchases residential mortgages, commercial real estate mortgages and interests in such loans and mortgage-backed securities and other securities issued by the United States government-sponsored enterprises (GSEs), as well as other investments permitted by applicable laws and regulations. The Company has two wholly owned and consolidated subsidiaries, including HudCiti Service Corporation and HC Value Broker Services, Inc.

Receive News & Ratings for First Financial Bankshares Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for First Financial Bankshares Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply